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iPower Reports Fiscal Second Quarter 2025 Results

1. iPower's Q2 revenue rose 14% to $19.1 million. 2. Net income improved to $0.2 million from a $1.9 million loss. 3. Total debt reduced by 31% to $4.4 million, enhancing financial stability. 4. CEO highlights supply chain diversification and SuperSuite platform growth. 5. Operating expenses decreased 22%, indicating efficiency improvements.

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Why Bullish?

iPower's revenue growth and profitability signals positive market momentum, benefiting stock performance. Similar instances in tech sectors show stock gains following improved quarterly results.

How important is it?

Significant financial improvements indicate potential for future growth, aligning with investor interests. Past results in similar contexts have led to stock rallies.

Why Short Term?

Earnings releases typically have immediate effects on stock price; ongoing financial improvements can sustain this. Companies with strong quarterly results often see short-term price spikes.

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IPW
February 13, 2025 16:05 ET  | Source: iPower, Inc. Fiscal Q2 Revenue up 14% to $19.1 Million Achieves GAAP Profitability and Positive Cash Flow from Operations RANCHO CUCAMONGA, Calif., Feb. 13, 2025 (GLOBE NEWSWIRE) -- iPower Inc. (Nasdaq: IPW) (“iPower” or the “Company”), a tech and data-driven ecommerce services provider and online retailer, today announced its financial results for the fiscal second quarter ended December 31, 2024. Fiscal Q2 2025 Results vs. Year-Ago Quarter Total revenue increased 14% to $19.1 million.Gross profit increased 15% to $8.4 million, with gross margin up 40 bps to 44.0%.Net income attributable to iPower improved to $0.2 million or $0.01 per share, compared to net loss attributable to iPower of $1.9 million or $(0.06) per share.As of December 31, 2024, total debt was reduced by 31% to $4.4 million compared to $6.3 million as of June 30, 2024. Management Commentary “We delivered strong results across all key financial metrics in our fiscal second quarter while further enhancing our SuperSuite platform,” said Lawrence Tan, CEO of iPower. “Throughout the quarter, we continued to optimize operations and strengthen our presence across both our established and emerging sales channels. We also remain focused on supply chain diversification by exploring new supplier relationships beyond our existing network, reinforcing our commitment to building a more resilient and adaptable infrastructure.” “Our SuperSuite platform is gaining further momentum as we leverage our superior supply chain, warehousing and merchandising expertise to drive sales growth for partners with innovative product catalogs. Additionally, we are making steady progress with our recently launched SaaS platform, refining its capabilities to improve supplier collaboration, streamline operations, and better align partners with evolving market demands. With a strong pipeline of prospective partners, we are well-positioned to capitalize on the growing demand for SuperSuite as we bolster our comprehensive service offerings.” iPower CFO, Kevin Vassily, added, “Our ongoing efforts to optimize our cost structure have delivered meaningful results as we continue to drive gross margin expansion and operating leverage in our business. We have also officially shuttered our legacy commercial hydroponics business, as we are now focused on our core competency as a data-driven, consumer products and services company. We believe these initiatives, coupled with our accelerating growth in our SuperSuite business, will enable us to execute on our goals ahead.” Fiscal Second Quarter 2025 Financial Results  Total revenue in the fiscal second quarter of 2025 increased 14% to $19.1 million compared to $16.8 million for the same period in fiscal 2024. The increase was driven primarily by growth in iPower’s SuperSuite supply chain offerings, as well as greater product sales to the Company’s largest channel partner. Gross profit in the fiscal second quarter of 2025 increased 15% to $8.4 million compared to $7.3 million in the same quarter in fiscal 2024. As a percentage of revenue, gross margin increased 40 basis points to 44.0% compared to 43.6% in the year-ago period. The increase in gross margin was primarily driven by improved pricing through key supplier negotiations. Total operating expenses in the fiscal second quarter of 2025 improved 22% to $7.7 million compared to $9.9 million for the same period in fiscal 2024. The decrease in operating expenses was driven primarily by lower selling and fulfillment expenses related to the Company’s largest channel partner. Net income attributable to iPower in the fiscal second quarter of 2025 improved to $0.2 million or $0.01 per share, compared to net loss attributable to iPower of $1.9 million or $(0.06) per share for the same period in fiscal 2024. Cash and cash equivalents were $2.9 million at December 31, 2024, compared to $7.4 million at June 30, 2024. As a result of the Company’s debt paydown, total debt was reduced by 31% to $4.4 million compared to $6.3 million as of June 30, 2024. Conference Call  The Company will hold a conference call today, February 13, 2025, at 4:30 p.m. Eastern Time to discuss its results for the fiscal second quarter ended December 31, 2024. iPower’s management will host the conference call, which will be followed by a question-and-answer session. The conference call details are as follows: Date: Thursday, February 13, 2025Time: 4:30 p.m. Eastern timeDial-in registration link: hereLive webcast registration link: here Please dial into the conference call 5-10 minutes prior to the start time. If you have any difficulty connecting with the conference call, please contact the Company’s investor relations team at IPW@elevate-ir.com. The conference call will also be broadcast live and available for replay in the Events & Presentations section of the Company’s website at www.meetipower.com. About iPower Inc.  iPower Inc. is a tech and data-driven online retailer, as well as a provider of value-added ecommerce services for third-party products and brands. iPower's capabilities include a full spectrum of online channels, robust fulfillment capacity, a nationwide network of warehouses, competitive last mile delivery partners and a differentiated business intelligence platform. iPower believes that these capabilities will enable it to efficiently move a diverse catalog of SKUs from its supply chain partners to end consumers every day, providing the best value to customers in the U.S. and other countries. For more information, please visit iPower's website at www.meetipower.com. Forward-Looking Statements  All statements other than statements of historical fact in this press release are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that iPower believes may affect its financial condition, results of operations, business strategy, and financial needs. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. iPower undertakes no obligation to update forward-looking statements to reflect subsequent events or circumstances, or changes in its expectations, except as may be required by law. Although iPower believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and iPower cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results and performance in iPower's Annual Report on Form 10-K, as filed with the SEC on September 20, 2024, and in its other SEC filings, including Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Investor Relations Contact Sean Mansouri, CFA or Aaron D’SouzaElevate IR(720) 330-2829IPW@elevate-ir.com iPower Inc. and SubsidiariesUnaudited Condensed Consolidated Balance SheetsAs of December 31, 2024 and June 30, 2024      December 31, June 30,     2024 2024     (Unaudited)   ASSETS      Current assets       Cash and cash equivalent $2,877,457  $7,377,837  Accounts receivable, net  13,926,432   14,740,093  Inventories, net  9,183,631   10,546,273  Prepayments and other current assets, net  2,292,744   2,346,534    Total current assets  28,280,264   35,010,737           Non-current assets       Right of use - non-current  4,757,429   6,124,163  Property and equipment, net  303,059   370,887  Deferred tax assets, net  3,001,517   2,445,605  Goodwill  3,034,110   3,034,110  Intangible assets, net  3,306,014   3,630,700  Other non-current assets  1,187,179   679,655    Total non-current assets  15,589,308   16,285,120              Total assets $43,869,572  $51,295,857           LIABILITIES AND EQUITY      Current liabilities       Accounts payable, net  8,853,320   11,227,116  Other payables and accrued liabilities  3,491,596   3,885,487  Lease liability - current  1,540,624   2,039,301  Short-term loan payable  -   491,214  Short-term loan payable - related party  350,000   350,000  Revolving loan payable, net  -   5,500,739  Income taxes payable  274,947   276,158    Total current liabilities  14,510,487   23,770,015           Non-current liabilities       Long-term revolving loan payable, net  4,042,400   -  Lease liability - non-current  3,612,756   4,509,809              Total non-current liabilities  7,655,156   4,509,809              Total liabilities  22,165,643   28,279,824           Commitments and contingency  -   -           Stockholders' Equity       Preferred stock, $0.001 par value; 20,000,000 shares authorized; 0 shares issued and        outstanding at December 31, 2024 and June 30, 2024  -   -  Common stock, $0.001 par value; 180,000,000 shares authorized; 31,359,899 and        31,359,899 shares issued and outstanding at December 31, 2024 and June 30, 2024  31,361   31,361  Additional paid in capital  33,867,156   33,463,883  Accumulated deficits  (12,041,063)  (10,230,601) Non-controlling interest  (44,195)  (38,204) Accumulated other comprehensive loss  (109,330)  (210,406)   Total stockholders' equity  21,703,929   23,016,033              Total liabilities and stockholders' equity $43,869,572  $51,295,857            iPower Inc. and SubsidiariesUnaudited Condensed Consolidated Statements of Operations and Comprehensive LossFor the Three and Six Months Ended December 31, 2024 and 2023     For the Three Months Ended December 31, For the Six Months Ended December 31,    2024 2023 2024 2023    (Unaudited) (Unaudited) (Unaudited) (Unaudited)REVENUES           Product sales $17,606,889  $16,800,122  $35,882,301  $43,308,496  Service income  1,465,682   -   2,198,791   -   Total revenues  19,072,571   16,800,122   38,081,092   43,308,496                COST OF REVENUES             Product costs  9,461,119   9,481,882   19,378,567   24,231,411  Service costs  1,221,566   -   1,824,742   -   Total cost of revenues  10,682,685   9,481,882   21,203,309   24,231,411                GROSS PROFIT  8,389,886   7,318,240   16,877,783   19,077,085                OPERATING EXPENSES:             Selling and fulfillment  4,628,914   6,936,980   10,543,722   17,000,451  General and administrative  3,077,365   2,933,607   8,396,888   5,897,658   Total operating expenses  7,706,279   9,870,587   18,940,610   22,898,109                INCOME (LOSS) FROM OPERATIONS  683,607   (2,552,347)  (2,062,827)  (3,821,024)               OTHER INCOME (EXPENSE)             Interest expenses  (140,672)  (182,612)  (280,634)  (410,977) Loss on equity method investment  (802)  (801)  (1,721)  (1,826) Other non-operating income (expenses)  (205,958)  128,838   12,728   61,672   Total other expenses, net  (347,432)  (54,575)  (269,627)  (351,131)               INCOME (LOSS) BEFORE INCOME TAXES  336,175   (2,606,922)  (2,332,454)  (4,172,155)               PROVISION FOR INCOME TAX EXPENSE (BENEFIT)  120,511   (688,939)  (516,001)  (964,821)NET INCOME (LOSS)  215,664   (1,917,983)  (1,816,453)  (3,207,334)                Non-controlling interest  (3,155)  (3,155)  (5,991)  (5,991)               NET INCOME (LOSS) ATTRIBUTABLE TO IPOWER INC. $218,819  $(1,914,828) $(1,810,462) $(3,201,343)               OTHER COMPREHENSIVE INCOME (LOSS)             Foreign currency translation adjustments  156,130   (160,255)  101,076   (160,962)               COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO IPOWER INC.   $374,949  $(2,075,083) $(1,709,386) $(3,362,305)               WEIGHTED AVERAGE NUMBER OF COMMON STOCK             Basic  31,437,517   29,790,242   31,427,360   29,777,378                 Diluted  31,437,517   29,790,242   31,427,360   29,777,378                EARNINGS (LOSSES) PER SHARE             Basic $0.01  $(0.06) $(0.06) $(0.11)                Diluted $0.01  $(0.06) $(0.06) $(0.11)               

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